**London**: Britain intends to invest $640 billion in reindustrialization by 2028, driven by concerns over supply chain resilience and geopolitical tensions. A significant shift towards nearshoring is underway, though UK businesses are still trailing their US counterparts in investment momentum.
Britain is poised to invest an estimated $640 billion in reindustrialization efforts by 2028, a significant increase from the $430 billion expected in 2024. This ambitious plan aims to diversify supply chains and mitigate the impacts of ongoing trade wars and tariffs, according to a report by Capgemini.
Emerging trends indicate that UK businesses are shifting their focus towards long-term growth, with 28% of executives planning to invest in nearshoring initiatives this year, a notable rise from just 13% in 2024. However, the UK still trails behind the US, where 37% of executives have already allocated investments toward nearshoring.
Key drivers behind this intensified focus on reindustrialization include supply chain resilience, which 97% of executives cited as a concern, alongside geopolitical worries (94%) and a growing desire to bring operations closer to customers (96%). Notably, over three in five (62%) executives affirm they are actively implementing reindustrialization strategies within their organisations. The recognition of supply chain pressure has surged, with 95% of executives indicating it as a major concern, up from 69% the previous year. This year’s survey also marks the first incidence where proximity to customers emerged as a significant motivator for executives.
Additionally, a substantial proportion of both UK (48%) and US (59%) executives have accelerated their reindustrialization efforts owing to ongoing changes in tariff policies. Aiman Ezzat, the Chief Executive Officer at Capgemini, remarked, “Organizations are intensifying their efforts to de-risk and diversify their manufacturing and supply chains through friendshoring to reinforce proximity to markets.”
The study highlights that the push for reindustrialization is particularly pronounced in sectors such as battery and energy storage manufacturing, automotive, and telecommunications. Geographically, there is a clear intention among businesses to reduce supply chain dependence on China, with 82% of surveyed executives indicating plans to decrease reliance on the country, a significant rise from 58% in 2024. Instead, firms are targeting reindustrialization efforts across regions including North America, the UK, Mexico, Vietnam, India, and North Africa.
Ezzat further stressed the importance of regional collaboration, stating, “In an evolving global landscape, regional collaboration with suppliers, technology providers and policymakers will be key to build a resilient and adaptable manufacturing ecosystem.”
Source: Noah Wire Services
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